Eminence Capital and TIBCO Software
Eminence Capital reduced its position in TIBCO Software (TIBX). The fund’s 13G filing in October 2014 noted that it owns 8,814,760 shares of TIBCO Software. This is down from the 8,899,702 shares, the fund reported in its 3Q14 portfolio. The filing noted the fund owns a passive 5.4% stake in the company.
Vista Equity Partners takes TIBCO private
On December 5, 2014, Vista Equity Partners completed the acquisition of TIBCO for $4.3 billion, or $24 per share, in a cash transaction. This acquisition includes the assumption of debt. The purchase price is at a 26.3% premium to the closing price of TIBX common stock on September 23, 2014.
After the announcement of the acquisition by Vista, Vivek Ranadive stepped down as chairman and CEO. Chief operating officer Murray Rode became the company’s new CEO. Rode noted, “This is the right direction for TIBCO’s long-term strategy and will better serve its customers and employees. With Vista Equity Partners, TIBCO expects to enter its next chapter of innovation, growth, and leadership.”
In November 2014, TIBX announced Balboa Merger Sub’s offering of $950 million of senior notes. The net proceeds from the offering, together with other financing sources, were to be used to fund the acquisition. TIBCO will assume all of the obligations after the acquisition is complete.
About TIBCO Software
TIBCO Software provides infrastructure and business intelligence software, and it sells products through a direct sales force. It also sells products through alliances with leading software vendors and system integrators. Worldwide, companies in diverse industries license TIBX’s products. TIBCO operates in two segments: Software, as well as Service and Maintenance.
Eminence Capital’s 13G positions
The fund initiated a position in Darling Ingredients (DAR). It increased positions in Men’s Wearhouse (MW) and XOOM (XOOM). It reduced its positions in TIBCO Software (TIBX) and Fidelity National Financial (FNF).
In the next part of our series, we’ll discuss Eminence Capital’s position in Fidelity National Financial.